Cairn UK to offload 8% stake in Indian arm to raise $940 mn

Cairn Energy is selling an 8 percent stake in India-focused oil explorer Cairn India in a deal that could raise up to $940 million, in a deal that could be worth around $1billion.

Reuters

Cairn Energy is selling nearly 153 million shares of Cairn India for between Rs 317.90 and Rs 328.30 per share, said the source, declining to named as he was not authorised to speak to the media.

Post the sale, the UK-based energy firm, which was the majority holder in Cairn India before it sold over 50% controlling stake to the Vedanta group in December 2011, will hold 10.3% in the Indian company.

Cairn has appointed Citigroup as sole book runner for the transaction. The block deal is expected to be done on Tuesday across stock exchanges.

.According to a Bloomberg report, Cairn has pledged to sell down its remaining stake in Cairn India to free up cash for new projects after spending $1 billion on a two-year exploration campaign in Greenland that failed to find oil and gas